GBP/EUR Exchange Rate Rangebound Despite Growing Confidence in UK Economy
The Pound Euro exchange rate rose today as the UK further eases lockdown restrictions, allowing pubs and restaurants as well as people across the country being allowed to socialise indoors. The pairing is currently fluctuating around €1.16.
Sterling has risen on growing confidence in the UK economy as Covid-19 infections and the daily death toll continue to remain relatively low.
Sir Jeremy Farrar, a member of the government’s independent scientific advisory group SAGE, was however more cautious, saying:
‘I think we will see an increase of cases and infections over the coming weeks as some of the restrictions are lifted, but the key question is whether we have decoupled increased transmission in the number of people who do get infected from the number of people who get ill and need to go to hospital.’
UK Health Secretary Matt Hancock has, however, expressed confidence in Covid-19 vaccine effectiveness against the India variant of the coronavirus.
In the absence of any influential UK economic data today, however, the Pound Euro exchange rate has begun to weaken.
Euro (EUR) Exchange Rate Steady Despite Eurozone’s Upgrade of Outlook for Eurozone Economy
The Euro (EUR) struggled to rise against the Pound (GBP) today despite the European Central Bank (ECB) upgrading its outlook for the Eurozone economy.
Economists at HSBC have expressed optimism in the bloc’s economy saying:
‘[E]conomic activity is certainly more stable through the latest lockdown than last year.’
As a result, the single currency has benefited from growing optimism in the bloc’s ability to recover from the coronavirus pandemic.
Nevertheless, the lack of notable Eurozone economic data has left the EUR relatively rudderless today, leaving the EUR/USD exchange rate treading water.
GBP/EUR Exchange Rate Forecast: Could Falling UK Unemployment Boost Sterling?
Euro (EUR) traders will be looking ahead to the preliminary Eurozone GDP figure for the first quarter tomorrow.
Any improvement in the outlook for the Eurozone’s economy for the first or second quarter would bolster the EUR/GBP exchange rate.
Tomorrow will also see the release off the latest Eurozone employment change data for the first quarter.
If the Eurozone’s joblessness continues to fall, then the EUR/GBP exchange rate would head higher.
Pound (GBP) traders will eye tomorrow’s publication of the latest UK ILO unemployment rate report for March.
The Pound Euro exchange rate could head higher if unemployment in the UK continues to fall.